How does M1 money supply affect the value of digital currencies?

1 answers

• Dec 06, 2021 · 3 years ago
  At BYDFi, we believe that the M1 money supply can have an impact on the value of digital currencies. As the M1 money supply increases, it can lead to inflation in traditional currencies, which may decrease their value. This can potentially drive investors towards digital currencies as an alternative store of value. However, it's important to note that the value of digital currencies is influenced by various other factors such as market sentiment, technological advancements, and regulatory developments. Therefore, while the M1 money supply can play a role, it's not the sole determinant of the value of digital currencies.
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